Khadi and Village Industries Commission Mumbai

PROJECT PROFILE ON CANVAS SHOES

Introduction :
The Canvas Shoes are used by both the Civilians for casual wear and sports as well as for Defence
& Indl. Purposes. The players, students and children use the canvas shoes for physical training and
other games. This type of shoes are also extensively used by Army, Navy, Air-force, Police, Home
Guards, NCC Cadets etc. The Canvas Shoes are very much popular among all walks of lives and
are in great demand. Such shoes are made with canvas uppers and rubber soles by vulcanization
process and are very much popular because of lightweight, comfort and low cost.

1 Name of the Product : CANVAS SHOES

2 Project Cost :
a Capital Expenditure
Land : Own
Work shed in sq.ft rented 0 Rs. -
Equipment : Rs. 1,357,500.00
Mixing Mill 4" X 36" with Chilled Cast Rools with reducing ger 50HP motor, Calendaring machine for
cloth 8" X24" with 25 H.P. motor, Rubber spreading machine 12" X 30" with 25 H.P. Motor, Vulcaniser 9'
X5' , Boiler, Embossing machine, Chirner with 1 HP motor, Eyeleting machine (hand operated), Clicking
press 5 tones power operated with 5 HP motor, Table type, Sewing machine (Ind) power operated with
1/2 HP motor, Aluminium and iron shoe lasts, Extrude for fixing, Moulds, dies for upper bottom clicking,
Trollis, Office Equipments.

Total Capital Expenditure Rs. 1,357,500.00

b Working Capital Rs. 800,000.00
TOTAL PROJECT COST : Rs. 2,157,500.00

3 Estimated Annual Production Capacity: (Rs. in 000)

Sr.No. Particulars Capacity in No./Q. Rate Total Value
1 CANVAS SHOES 55000.00 67.00 3637.05

TOTAL 55000.00 67.00 3637.05

4 Raw Material : Rs. 1,608,000.00

5 Labels and Packing Material : Rs. 100,000.00

6 Wages (5-Skilled & 9- Unskilled) : Rs. 1,240,000.00

7 Salaries (1-Manager) Rs. : 120,000.00

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8 Administrative Expenses : Rs. 100,000.00

9 Overheads : Rs. 75,000.00

10 Miscellaneous Expenses : Rs. 100,000.00

11 Depreciation : Rs. 135,750.00 .

12 Insurance : Rs. 13,575.00

13 Interest (As per the PLR)

a. C.E.Loan : Rs. 176,475.00

b. W.C.Loan : Rs. 104,000.00

Total Interest Rs. 280,475.00

14 Working Capital Requirement :

Fixed Cost Rs. 510,050.00

Variable Cost Rs. 3,127,000.00

Requirement of WC per Cycle Rs. 909,263.00

15 Cost Analysis
Sr.No. Particulars Capacity Utilization(Rs in '000)
100% 60% 70% 80%
1 Fixed Cost 510.05 306.03 357.04 408.04
2 Variable Cost 3127.00 1876.20 2188.90 2501.60
3 Cost of Production 3637.05 2182.23 2545.94 2596.94
4 Projected Sales 4300.00 2580.00 3010.00 3440.00
5 Gross Surplus 662.95 397.77 464.07 530.36
6 Expected Net Surplus 527.00 262.00 328.00 395.00
Note : 1.All figures mentioned above are only indicative.
2.This is model project profile for guidence
3.Cost of Project, and its priofility will be changed depends on the area, availability of raw
Material, man power, power requierement and various other factors etc..